State oil major Saudi Aramco has invited contractors to submit bids for the deal to build 2,500 villas in the city of Dhahran in the Eastern Province of Saudi Arabia.
Contractors have until 3 December to submit bids for the construction contract, which will also involve building infrastructure, landscaping, roads and mosques.
The project is the latest construction contract that Aramco has tendered, as it continues to become an increasingly important infrastructure client in the kingdom.
The oil firm is also the client for the programme to develop 11 stadiums across the kingdom. The stadiums are expected to cost at least $400m each to build, meaning the overall programme will cost more than $4.4bn. The contractors have been asked to bid for all the stadiums, with a maximum of two awarded to each company. The 18-month deals will be due for completion in June 2016.
The facilities will be built in Medina, Al-Qassim, the Eastern Province, Asir, Tabuk, Hail, the Northern Borders, Jizan, Najran, Baha and Al-Jouf.